Indonesia Economy Forum

[Nike]

Foreign exchange reserves up to US$124.5 billion in March

• Marchio Irfan Gorbiano
  The Jakarta Post
  

Jakarta / Mon, April 8, 2019 / 01:08 pm

The Bank Indonesia building on Jl. MH Thamrin in Central Jakarta. (Shutterstock.com/GeorginaCaptures)
Foreign exchange reserves strengthened in March to US$124.5 billion, up from $123.3 billion in the previous month, on the back of improved foreign exchange earnings from the oil and gas sector, Bank Indonesia (BI) reported on Monday.

The central bank said in a statement that the latest foreign exchange reserves were equal to seven months of imports or 6.8 months of imports and the payment of the government’s short-term external debt, both of which were well above international adequacy standards of around three months of imports.

“BI sees the foreign exchange reserves as being able to support the resiliency of the external sector while maintaining macroeconomic and financial system stability,” said BI spokesman Onny Widjanarko in the statement.

Center of Reform on Economic (CORE) Indonesia research director Piter Abdullah said the increased foreign exchange reserves in March indicated that the amount of foreign exchange earnings, particularly from exports in the oil and gas sector, were larger than the amount of foreign exchange spent to pay for the government’s short-term external debt.

He added that the relatively stable rupiah meant that the foreign exchange reserves were not frequently tapped to stabilize the currency as foreign capital had started to return to Indonesia since the end of last year, partly because of the United States Federal Reserve's more dovish outlook.

“The condition will continue in line with the global economy, which tends to slow down, encouraging central banks, particularly the Fed, to tilt toward a more dovish [stance on its monetary policy],” said Piter. (bbn)

 

[Nike]

Nation's longest underpass to be constructed in Yogyakarta
8th Apr 2019 18:33

Jakarta (ANTARA) - The Public Works and Public Housing Ministry is currently constructing Indonesia's longest underpass, reportedly spanning 1.3 kilometers, under the Kulonprogo Airport, or New Yogyakarta International Airport (NYIA), in the Special Region of Yogyakarta.

“This underpass is part of the Java Southern Coast national road. Careful consideration of all security factors is necessary during the construction process,” Indonesian Public Works and Public Housing Minister Basuki Hadimuljono stated at a press conference here, Monday.

The minister believes that the new underpass aims to maintain open access to the Java Southern Coast national road connecting Purwokerto, Central Java, with Yogyakarta.

Hadimuljono pointed to access to the old Java Southern Coast national road being cut owing to the construction of the NYIA.

To ensure all security aspects pertaining to the underpass were covered, Hadimuljono has tasked Head of the Long Bridge and Underpass security Committee Sugiyartanto and Directorate General of Highways to make careful calculations covering all security and safety aspects of the underpass.

For instance, the minister has pointed to the need for more emergency exits in the underpass.

“Currently, discussions centering around security aspects are still ongoing,” he stated.

Furthermore, Minister Hadimuljono had appealed to contractors -- the joint venture operation of PT Wijaya Karya (WIKA) and PT Menara Cipta Metalindo (MCM) -- to be heedful of the underpass’ waterways to avert any instances of flooding.

He also highlighted the importance for contractors to fine-tune their working methodologies by being sentient of the occupational health and safety aspects and their sanitation.

“The national road should not be dusty, so the construction equipment should be in a clean condition while entering and exiting the construction site to prevent any discomfort to road users,” he emphasized.

In its endeavor to support the development of the New Yogyakarta International Airport as part of the national strategic projects, Hadimuljono stated that his ministry and PT Angkasa Pura I (Persero) will take mitigatory measures against flooding that had hit in March 2019.

Progress in the work of constructing the underpass has currently reached 30 percent completion, that began in November 2018, and is aimed for completion by December 2019.

Construction of the underpass had cost Rp293.18 billion of the Government Shariah Securities for the 2018-2019 period. EDITED BY INE

Reporter: Azizah Fitriyanti, Safira Hali

Editor: Fardah Assegaf

COPYRIGHT © ANTARA 2019

 

[Nike]

Maluku's economy still depends on primary sector: Minister
9th Apr 2019 21:34

Ambon (ANTARA) - Minister of National Development Planning / Head of the National Development Planning Agency (Bappenas) Bambang Brodjonegoro attributed the slow development in Maluku to the economy still being dependent on the primary sector and government administration.

"The significant contribution of the government indicates that the economy is not yet independent," Bambang said during his keynote speech at the Development Planning Deliberation (Musrenbang) 2020 of the Maluku provincial city of Ambon on Tuesday.

The magnitude of the government's contribution in Maluku proves that the role of the private sector is still lacking in terms of regional development and basic infrastructure, while connectivity and poverty rates are twice as high as they are nationally.

He suggested several alternatives that the Provincial Government and 11 districts/cities in Maluku could opt for to overcome poverty and inequality in development in Maluku, including the development of inter-regional connectivity infrastructure.

Inter-regional connectivity infrastructure that is adequate will facilitate the mobilization of people and goods and the service sector.

In addition, it will provide incentives to private investors who want to invest in Maluku.

Whereas to overcome poverty and inequality, Maluku must focus on programs that have a direct impact on reducing poverty, developing local competitiveness, and improving the quality of human resources, he said.

According to the Minister, the Regional 2019 Development Planning Technical Coordination Meeting (Rakortekrenbang) in Balikpapan, regional apparatus organization (OPD) in Maluku, submitted 1,926 proposals.

"Some 144 of the proposals have been verified and discussed at the Development Planning Technical Coordination Meeting (Rakortekrenbang), and 20.4 percent of them have been approved by ministries/institutions," he said.

Whereas OPD 11 District / City in Maluku submitted 1,972 proposals, of which 109 were verified and discussed at Rakortekrenbang, and 10.1 percent of them were approved by ministries/agencies.

A number of proposed regional projects approved by the ministry/institution include the procurement of 314 two-wheeled tractors, 500 hectares of Rice Farming Business Insurance (AUTP), community market revitalization managed by cooperatives in disadvantaged, border and post-disaster areas.

In addition, new entrepreneurs are supported by the provision of initial capital, and the construction of the Drinking Water Supply System (SPAM) in the Outer Islands on Nura Island, Pulau Masela District, Southwest Maluku District (MBD).

"They are also aided by the Namlea City Wastewater Treatment System, as well as 3,889 beneficiary families (KPM), who get conditional cash assistance through family hope programs (PKH)," Bambang added.



Reporter: Eliswan Azly

Editor: Suharto

COPYRIGHT © ANTARA 2019

 

[katarabhumi]

Indonesia reached top position in global Muslim tourism index
The Jakarta Post - Tue, April 9, 2019 / 06:28 pm

Indonesia and Malaysia shared the top position in the 2019 Global Muslim Travel Index (GMTI), which was released by Mastercard-CrescentRating recently.

Last year, Indonesia was placed second behind Malaysia. This year, they both scored 78 in the index.

There is no second position this year. Trailing behind is Turkey in third position, Saudi Arabia in fourth position and United Arab Emirates in fifth position.

CrescentRating CEO Fazal Bahardeen said in a press statement issued on Tuesday that Indonesia had invested a lot in infrastructure over the last few years to make its destinations friendly to Muslim travelers.
“In terms of basic infrastructure such as the availability of halal food and Muslim-friendly facilities, we see a lot of improvement. It also has better connectivity,” added Bahardeen, saying Indonesia had also invested in Muslim tourism and promoted itself through digital marketing.

He, however, stressed that Indonesia still had a lot of work to do to maintain its position and develop its Muslim-friendly tourism destinations.

“Indonesia still has a lot to do to promote its destinations. It has conducted general promotions, but it has to have a specific target for the Muslim market,” said Bahardeen.

The GMTI report ranks 130 Muslim traveler destinations globally. In defining the ranking, it assesses four key factors -- access, communication, the environment and service.

Tourism Minister Arief Yahya said Indonesia’s improved position was a result of policies implemented since 2015. Indonesia was placed sixth in 2015, fourth in 2016, third in 2017 and second last year. “It took five years to reach this position,” Arief added.

Mastercard-CrescentRating estimates that there were 140 million international Muslim visitors across the globe last year. The number is projected to increase to 230 million by 2026, with an estimated US$300 billion being poured into the coffers of the global tourism industry.

The Tourism Ministry has set a target of 5 million foreign Muslim tourists this year, up from the 2.6 million who visited Indonesia last year. The ministry estimates that they would contribute 22 percent of its $17.6 billion total target of foreign exchange from the tourism sector this year. (bbn)

https://www.thejakartapost.com/news...-position-in-global-muslim-tourism-index.html


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Indonesia chases Volvo, Renault investment in electric vehicles
Bloomberg - Wed, April 10, 2019 / 12:47 pm

The Indonesian government is seeking investment from Renault and Volvo to make electric vehicles as the country targets battery-powered automobiles to account for a quarter of the production by 2030.

The government has asked Renault and Volvo to consider building factories or assembly units in Southeast Asia’s largest market for cars, as it eyes production of 750,000 electric vehicles by 2030, said Harjanto, director general of metal, machinery, transportation and electronics at the industry ministry. The country’s total vehicle production is seen more than doubling to 3 million units during the period, he said.

President Joko "Jokowi" Widodo has promised tax incentives to draw foreign investment in electric vehicles while also making it expensive to own fossil fuel-powered automobiles to save the country about 798 trillion rupiah ($56 billion) from reducing dependence and imports of crude oil. While Hyundai Motor and Volkswagen have shown interest in manufacturing electric vehicles, a consortium of Chinese and Indonesian companies is already building a battery plant, according to Industry Minister Airlangga Hartarto.

PT Maxindo Renault Indonesia Chief Operating Officer Davy J. Tuilan said the French automaker will need to first conduct a feasibility study before deciding on investing in Indonesia, while Kina Wileke, a Volvo spokeswoman, didn’t immediately respond to request for comments.


Nickel Reserves

Abundant reserves of nickel ore, a key raw material in electric batteries, is an advantage Indonesia wants to tap for developing its electric vehicle industry and one company has started work on producing raw materials for electric batteries, Harjanto said. Once a battery production facility is in place, it would be easy to draw vehicle manufacturers, he said.

“Assembling is easy, so we must get hold of the upstream industry,” Harjanto said. “We want to make the components here. That’s why we’re now looking for a battery maker as we have the raw materials.”

PT Pertamina, Indonesia’s state-owned energy company, has announced plans to begin electric battery production, while PT Blue Bird will start adding electric cars to its taxi fleet from this year.

The government is working on a set of new rules for promoting electric vehicles which may offer lower luxury tax and progressively higher levy on vehicles which produce more emissions. Automakers may be allowed a two-year grace period to comply with the new regulation, Harjanto said.

Indonesia expects the establishment of an electric vehicles industry to boost its sagging exports, Harjanto said. The signing of a free-trade agreement with Australia in March will allow the country to export the vehicles duty free, he said.

https://www.thejakartapost.com/news...-renault-investment-in-electric-vehicles.html

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[Nike]

Pertamina finds new oil and gas reserves
10th Apr 2019 17:19

Illustration. Antara Jatim/Syaiful Arif/zk

Jakarta (ANTARA) - In the third quarter of 2019, State oil and gas company PT Pertamina, through its subsidiary PT Pertamina Hulu Energi, found new oil reserves in its Benewangi #J-01 well.

As part of efforts to augment its oil and gas reserves, Pertamina, through its subsidiary engaged in the upstream sector, focused on five new exploration areas, Pertamina Upstream Director Dharmawan H Samsu said in a written statement released on Wednesday.

With the well spudding having been completed in early 2019, the well produces 540 barrels of oil per day, he said.

To develop the Benewangi well, Pertamina Hulu Energi has identified several prospective basement plays in working areas nearby, with prospective resources estimated at 500 million barrels of oil (MMBO).

This prospect has the same petroleum system as the Benewangi well, he said.

In February 2019, Pertamina's other subsidiary, PT Pertamina EP, also found gas reserves from the Randuwangi well in Subang district, West Java, which are projected to reach 15 million barrels of oil equivalent (MMBOE).

In this second quarter of 2019, Pertamina EP also found gas and condensate reserves in the Pertamina EP Asset 4 in Toli sub-district, Banggai district, Central Sulawesi province.

The discovery of exploration well Morea-001 followed the discovery of reserves from exploration drilling in Wolai last year, with contingent resources of around 250 billion cubic feet of gas (BCFG) plus several million barrels of oil (MMBO).

The discovery of oil and gas reserves in Wolai last year and Morea this year will shore up Pertamina's confidence in conducting exploration either through seismic or drilling activities and speed up Enhanced Oil Recovery (EOR) synergy programs to increase its oil and gas reserves, he said.



Reporter: Suharto

Editor: Rahmad Nasution

COPYRIGHT © ANTARA 2019


https://m.antaranews.com/en/news/123336/pertamina-finds-new-oil-and-gas-reserves

 

[BDforever]

Pertamina finds new oil and gas reserves
10th Apr 2019 17:19

Illustration. Antara Jatim/Syaiful Arif/zk

Jakarta (ANTARA) - In the third quarter of 2019, State oil and gas company PT Pertamina, through its subsidiary PT Pertamina Hulu Energi, found new oil reserves in its Benewangi #J-01 well.

As part of efforts to augment its oil and gas reserves, Pertamina, through its subsidiary engaged in the upstream sector, focused on five new exploration areas, Pertamina Upstream Director Dharmawan H Samsu said in a written statement released on Wednesday.

With the well spudding having been completed in early 2019, the well produces 540 barrels of oil per day, he said.

To develop the Benewangi well, Pertamina Hulu Energi has identified several prospective basement plays in working areas nearby, with prospective resources estimated at 500 million barrels of oil (MMBO).

This prospect has the same petroleum system as the Benewangi well, he said.

In February 2019, Pertamina's other subsidiary, PT Pertamina EP, also found gas reserves from the Randuwangi well in Subang district, West Java, which are projected to reach 15 million barrels of oil equivalent (MMBOE).

In this second quarter of 2019, Pertamina EP also found gas and condensate reserves in the Pertamina EP Asset 4 in Toli sub-district, Banggai district, Central Sulawesi province.

The discovery of exploration well Morea-001 followed the discovery of reserves from exploration drilling in Wolai last year, with contingent resources of around 250 billion cubic feet of gas (BCFG) plus several million barrels of oil (MMBO).

The discovery of oil and gas reserves in Wolai last year and Morea this year will shore up Pertamina's confidence in conducting exploration either through seismic or drilling activities and speed up Enhanced Oil Recovery (EOR) synergy programs to increase its oil and gas reserves, he said.



Reporter: Suharto

Editor: Rahmad Nasution

COPYRIGHT © ANTARA 2019


https://m.antaranews.com/en/news/123336/pertamina-finds-new-oil-and-gas-reserves

nice sell to us

 

[Nike]

nice sell to us

I though last deal enery between Dhaka and Jakarta is about LNG and coal sales as Dhaka focused on coal and gas turbin steam engine for their electricity

 

[Nike]

Indonesia nets US$11.5 million transactions at Australian Auto Expo
27 minutes ago

Jakarta (ANTARA) - Indonesia shone brightly at the Australian Auto Aftermarket Expo (AAAE) 2019, Australia's biggest yearly automotive exhibition, by registering potential transactions worth US$11.5 million.

"Indonesian automotive exports to Australia are expected to get a significant impetus, with Indonesia taking part in the exhibition," Indonesian Ambassador to Australia Y. Kristiarto S. Legowo noted in a statement here on Thursday.

The exhibition was organized on Apr 4-6 at the Melbourne Convention and Exhibition Centre, Australia.

Four Indonesian automotive companies -- PT Pertamina Lubricants, PT Gajah Tunggal Tbk, PT Rekadaya Multi Adiprima, and PT Astra Otoparts Tbk -- that displayed their products in the Indonesian Pavillion helped rake in the figure.

The Indonesian Trade Promotion Center (ITPC) in Sydney, the Indonesian Embassy in Canberra, and the Indonesian Consulate General in Melbourne supported the firms participating in the expo.

ITPC Sydney and the Indonesian Trade Attaché have kicked off Indonesia's participation through the Indonesia Pavilion based on the fact that the nation's automotive products have remained one of its top exports under the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA CEPA).

Indonesian Trade Attaché Agung Wicaksono admitted to Australia being a potential market for Indonesia, particularly for lubricant products, rubber tires, and automotive spare parts.

"The Indonesian government has, through this expo, demonstrated its support to the business world for promoting Indonesian automotive products in the Australian market," he noted.

The Trade Ministry's data indicated that US$34.9 million worth of Indonesia's automotive exports to Australia were recorded during the period from January to September last year, rising four percent than $25 million exports in 2017.

Some 400 exhibitors from various countries attended the expo, with major global firms -- Castrol, Schumacher Electric, Philips Automotive, Pro-Kit, and Repco Limited -- participating in the exhibition.

"In future, ITPC Sydney, the Indonesian Trade Attaché in Canberra, and the Indonesian Consulate General in Melbourne will step up promotional efforts of Indonesian automotive products and will take part in the AAAE 2020," ITPC Head Sydney Ayu Siti Maryam stated.



Reporter: Sella Panduarsa G, Sri Haryati

Editor: Suharto

COPYRIGHT © ANTARA 2019

 

[Nike]

A country of a quarter-billion people is trying to provide health care for all



“We’ll see a continuing role for natural gas—even if it shifts over time—not just as a bridge fuel but as a foundation for the future.” Read More

In 2014, Indonesia, a sprawling archipelagic nation of 250 million people, began phasing in one of the world’s largest single-payer health-care systems. Two and a half years later, its government guarantees comprehensive health insurance for 165 million citizens and residents, with plans to expand coverage to the entire population by 2019. According to the office of the Social Security Administering Body for Health, which runs the program, more than 100 million health-care visits have been covered since its launch.

But the picture is not entirely rosy. Revenue is falling well short of costs, health clinics are overwhelmed by the rush of new patients, and fraudulent claims and bureaucratic dysfunction are rife. Some question whether a developing country that devotes only 3.5 percent of its gross domestic product to health care can realistically guarantee comprehensive coverage to each of its citizens.

Physician Sidartawan Soegondo talks with diabetes patients at his clinic in Jakarta in April. (Beawiharta/Reuters)
“On the face of it, they’ve made much bigger promises than the government has capacity to deliver,” said May Tsung-Mei Cheng, a health policy research analyst at Princeton’s Woodrow Wilson School of Public and International Affairs.

When China began unrolling its universal health-care program in 2009, only certain high-priority conditions were covered, with the list gradually expanding as the country’s economy grew. Indonesia, which is substantially poorer than China, has imposed no such restrictions, covering routine procedures and complex, expensive operations alike. Aging Indonesian farmers have had kneecaps replaced. Heart transplants are funded.

In 2015, JKN’s first full year of operation, the program’s expenses exceeded government projections by more than $300 million. Costs will climb further when the government expands coverage to the country’s rural poor, who disproportionately lack coverage today. As it is, hospitals and health clinics complain that the state does not generally compensate them sufficiently for the care they provide to those with national health insurance.

As a result, the public’s experience has also been mixed, according to Hasbullah Thabrany, a professor of health economics at the University of Indonesia who is one of the chief architects of the program.

“Due to low or perceived low payments, providers have shifted their costs to members/patients directly with discrimination of services, charging out of pocket or creating long queues” for services, Thabrany said.

The abrupt influx of tens of millions of new patients, all with claims and other paperwork needing to be processed, has also contributed to the interminable wait times. On the day of her chemotherapy treatments, Andri had to get in line at the hospital at 2 a.m. to receive the required authorization for her 2 p.m. appointment. Moreover, her state insurance allowed her to consult with only one doctor a day, she said, so if she needed to consult with someone other than her oncologist, she had to repeat the process the next day.

Many others, less lucky than Andri, are placed on long waiting lists before receiving critical care.


Indonesian public-health experts are now calling for substantial reforms, beginning with boosting revenue. The government recently raised the amount wealthy Indonesians are required to contribute to the system, but the cap is still lower than experts think is necessary. “The costs must be increased to ensure better quality of care and to ensure middle class customers join happily,” Thabrany wrote.

Donald Pardede, a senior adviser to the health minister on health economics, acknowledges the need for urgent reforms and said that, in an ideal world, “sky-is-the-limit” benefits would be reconsidered. But government legislation says all citizens have a right to comprehensive health care, and he says it is unlikely to be revised. “The citizenry would cry out, so that’s unlikely to happen,” he said.

Pardede noted that the government is working with hospitals to help them cut fraud and waste, which he says will reduce health-care costs in the long run. Overall, he remains optimistic.

“If I was forced to choose whether things are better now or before, I would choose now, because we’re better allies to ordinary people now,” he said.

On a recent Monday morning at the Cempaka Putih Health Clinic in central Jakarta, the facility’s three floors were overflowing with patients and crying babies, and benches had been set up outside the building to accommodate even more patients. The administrative staff is packed into an attic, processing paperwork. Ati Sukhmanhsih, the clinic’s chief administrator, said that officials were hoping to move to a larger space soon to accommodate the huge volume of new patients with access to free health care.

For Sukhmanhsih, the crowding can be viewed as a positive.

“Before, there were many who were sick, who didn’t receive care,” she said. “Now, because of the JKN, they can come to the clinic and we can help them.”
https://www.washingtonpost.com/worl...ory.html?noredirect=on&utm_term=.5fd1c2247f0f

 

[Nike]

South Tangerang confident to have MRT by 2022


News Desk
The Jakarta Post

Jakarta

Jakarta / Thu, April 11, 2019 / 03:58 pm

A ticketing official is seen at the entry gate of the MRT’s Bundaran HI Station in Jakarta. (The Jakarta Post/Iqbal Yuwansyah )


The capital's satellite city of South Tangerang in Banten expects the extension of MRT Jakarta to pass the area by 2022.

“It would be more or less 20 kilometers from Lebak Bulus, cut through to Jl. Raya Ciputat, turn around in Pamulang and [end in] Rawabuntu,” South Tangerang Deputy Mayor Benyamin Davnie said on Wednesday.

He added that his side was expecting the extended MRT to commence operation in South Tangerang by 2020.

He went on to say that the MRT might reach Soekarno-Hatta International Airport in Tangerang eventually.

In addition, Benyamin claimed that the city administration had received 20 feeder buses from the Transportation Ministry to support the MRT.

"The preparation has progressed. Therefore, [feeder buses] would serve up to the neighborhood unit [RT] or community unit [RW] level."

The MRT is important because up to 50 percent of South Tangerang residents work in Jakarta, Benyamin explained.

The South Tangerang administration is currently looking into sources of funding as it would not use any of the city’s budget for the project.

MRT Jakarta transit-oriented-development and planning department head Seni Pranata confirmed during a discussion in South Tangerang on Wednesday that the project was called Extension Link MRT Phase 1.

"This has been discussed with the Transportation Ministry, [both] city administrations, even the South Tangerang mayor," he said as quoted by kompas.com.

However, Seno declined to provide further details, saying the project was still under discussion, including the route and timeline to commence operation.

The construction of MRT Jakarta’s phase 2, which would span from the Hotel Indonesia traffic circle to Kota in West Jakarta, is expected to be completed by 2024. (sau)
https://www.thejakartapost.com/amp/...-tangerang-confident-to-have-mrt-by-2022.html

 

[katarabhumi]

Indonesia's manufacturing PMI edges up in Q1
Xinhua| 2019-04-11 17:38:54 | Editor: mingmei

JAKARTA, April 11 (Xinhua) -- Processing industry in Indonesia accelerated at a faster pace in the first quarter as demand drifted higher ahead of Islamic fasting month ended with festivity, a survey by the central bank showed on Thursday.

The lender's prompt manufacturing index (PMI) from January to March touched 52.65 percent, compared with 52.58 percent in the final quarter of last year and 50.51 percent at the first quarter 2018.

Reading above 50 percent suggests manufacturing industry weathers an expansion while one below 50 percent indicates a contraction.

Demand is regularly drifted up significantly prior to the Islamic fasting month of Ramadhan ended with Islamic festivity.

The upbeat momentum was in line with the annualized core inflation, stripping off government-controlled and volatile food prices, which ratcheted up 3.05 percent from January to March 2019 year-over-year, compared with 2.65 percent in the same period of last year, according to data from the national statistics bureau.

Besides, rupiah has also recovered from its long downtrend against the greenback as the U.S. Federal Reserve has signaled a dovish tone, since at the end of last year, for this year.

For the second quarter, the survey forecast the expansion will persist, indicated by the ratcheting up PMI index to 53.21 percent.

The higher expectation was contributed by edging up production and volume of stockpile.

The Southeast Asia's biggest economy has been striving to shift its exportation to manufactured products from natural resources base commodities.

Indonesian economy is expected to grow 5.3 percent this year after logging 5.17 percent last year.

http://www.xinhuanet.com/english/2019-04/11/c_137968910.htm
http://www.xinhuanet.com/english/2019-04/11/c_137968910.htm
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[Nike]

Trans-Java toll road will reduce prices of basic necessities: Minister
12th Apr 2019 00:11

Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan

Jakarta (ANTARA) - The Trans-Java Toll Road connecting the Merak Ferry Port in Banten Province to Banyuwangi in East Java would become a logistics route to support the growth of industries and reduce the prices of basic necessities, a top minister said here on Thursday.

"Our dream is to build the Trans-Java Toll Road spanning from Banjarnegara in Banten to Banyuwangi, which is targeted to be completed in 2020, or at the latest, in 2021," Coordinating Maritime Affairs Minister Luhut Binsar Pandjaitan said.

The toll road would become Indonesia's logistics route and was expected to help boost the country's economy as a result of the growing number of industries, he revealed in a press statement made available to Antara.

The toll road would reduce the prices of basic commodities and provide the people with alternative modes of transportation, he said, adding that experts had calculated that Java Island would be similar to an island city between 2045 and 2050.

On Wednesday, President Joko Widodo (Jokowi) inaugurated the Pasuruan-Probolinggo section of the Trans-Java toll road with hopes of it being able to drive the development of small and medium industrial areas in East Java.

"We hope that the completed toll road section will expedite the transportation of people, logistics goods, and materials as compared to before," Jokowi remarked.

The Trans-Java toll road, comprising the Pasuran-Probolinggo section, spanning 31.30 kilometers in length, will help visitors reach tourist destinations sooner.

With the Pasuruan-Probolinggo toll road section being completed, the Trans-Java Toll Road from Merak in Banten Province to Probolinggo in East Java Province spans across 962 kilometers.

The Government of Indonesia has targeted to complete the 1,148-km Trans-Java Toll Road from Merak to Banyuwangi in East Java by 2021.

According to Antara, infrastructure development appears to be the key focus of Jokowi, as a notable extension of toll roads was observed under his government.

Public Works and Housing Minister Basuki Hadimuljono pointed out that the construction of some 941 kilometers of toll roads and 3,423 kilometers of national roads was undertaken during the four-year term of the Widodo-Jusuf Kalla administration.

Work on the Trans-Java Highway that connects the ferry port in Merak, Banten Province, to Surabaya, the capital city of East Java Province, too was completed, thus reducing the travel time and decreasing the current logistics costs.nn

Under the central government's focused development projects, construction of toll roads was not merely conducted in Java but also outside the island, including in Sumatra, Kalimantan, and Sulawesi.

EDITED BY INE
Reporter: Ade Irma Junida, Rahmad Nasuti

Editor: Fardah Assegaf

COPYRIGHT © ANTARA 2019

 

[Nike]

BI records expansion in manufacturing sector in Q1

• News Desk
  The Jakarta Post
  

Jakarta / Fri, April 12, 2019 / 08:08 am

The Bank Indonesia building on Jl. MH Thamrin in Central Jakarta. (Shutterstock.com/Harismoyo )
Bank Indonesia (BI) released on Thursday a report on the performance of the manufacturing sector in the first quarter of 2019, reflected in the prompt manufacturing index (PMI-BI), which was recorded at 52.62 percent, higher than the 52.58 percent recorded in the fourth quarter of 2018.

According to the business activity survey conducted by BI in the first quarter, the net weighted balance (SBT), an indicator used to reflect business sentiment and direction, in the manufacturing sector was recorded at 1 percent, higher than the 0.32 percent recorded in the previous quarter.

The figure was in line with the purchasing managers index (PMI) issued by Nikkei Indonesia. “Nikkei Indonesia’s purchasing managers index also indicates the expansion in the manufacturing sector, which was recorded at 50.40,” BI said in the report as quoted by kontan.co.id.

Previously, Industry Minister Airlangga Hartarto said the Nikkei’s MPI in March was recorded at 51.2, up from 50.1 the previous month. It was also higher than the average PMI in other ASEAN countries, which stood at 50.3.

According to the central bank, the expansion in the manufacturing sector was seen in all component indexes — the order volume index (54.04 percent), the production volume index (53.49 percent) and the goods stock volume index (53.29 percent).

BI said the increase in the order volume index was triggered by an increase in domestic demand ahead of Ramadhan and Idul Fitri. BI estimated that all component indexes would continue to increase in the second quarter of 2019.

“Increasing production has also positively affected the demand for manpower. The manpower index in the first quarter increased to 51.22 percent from 48.92 in the fourth quarter of 2018,” BI said.

The most positive index was in the paper and printing subsector, which was recorded at 54.06 percent, while the food, beverage and tobacco subsector was recorded at 52.19 percent, the BI report said, adding that the index of the cement industry and non-metal mining goods was recorded at 50.53 percent.

BI projected that the PMI-BI would increase to 53.21 percent, indicating further expansion in the manufacturing sector. This was in line with the projected growth in the manufacturing sector, with the SBT projected to reach 3.73 percent. (bbn)

 

[Nike]

Manufacturing key to escape 5 percent growth trap

• News Desk
  The Jakarta Post
  

Jakarta / Fri, April 12, 2019 / 02:01 pm

A worker is pictured at an auto assembly plant in Bekasi, West Java. (Kompas/Totok Wijayanto)
GDP growth that has been hovering around 5 percent in recent years has become a tool for presidential candidate Prabowo Subianto to attack incumbent Jokowi “Jokowi” Widodo, who promised 7 percent growth in his campaign five years ago.

However, analysts see that it is not easy to achieve 6 to 7 percent growth, particularly if the country struggles to escape sluggish growth in manufacturing.

Institute for the Development of Economics and Finance (Indef) economist Andry Satrio Nugroho said Indonesia was not alone in the slowdown in manufacturing. He said 20 countries in which manufacturing contributed the most to economic growth had also experienced similar slowdowns.

He, however, said Indonesia had experienced a more serious slowdown compared to its peers in Southeast Asia. He said in the last 10 years the contribution of manufacturing to GDP growth had decreased 7 percent.

“The contribution of manufacturing to GDP growth in Thailand and Malaysia has also decreased, but it was only about 4 percent,” he said on Tuesday as quoted by kontan.co.id.

Andry pointed out the impacts of deindustrialization.

First, it would reduce tax revenue. He noted that as of February, revenue from manufacturing contracted to 11.3 percent of total tax revenue year-on-year (yoy) or Rp 36.87 trillion (US$2.6 billion). Over the same period last year, tax revenue from the sector grew 13.2 percent yoy.

Second, it would lower employment. “In Indonesia, manufacturing employs 14.05 percent of the workforce,” he said.

Another Indef economist, Fadhil Hasan, added that deindustrialization had also forced more workers to rely on the informal sector.

“Many agricultural workers have shifted to the service sector, with the informal service sector taking on more workers,” he said, referring to ride-hailing app drivers.

He said GDP growth could not be increased significantly if manufacturing was weak.

Since the economic crisis in 1998, manufacturing growth has always been lower than GDP growth. Last year, GDP grew 5.17 percent, while manufacturing grew 4 percent.

Andry said foreign investment was focused on services and the digital economy rather than manufacturing.

Meanwhile, Indonesian Chamber of Commerce and Industry deputy chairman for monetary, fiscal and public policy Raden Pardede stressed that the government should boost manufacturing through the simplification of licensing.

“We have to lift barriers for doing business as well as eliminate [unnecessary] costs,” he said as quoted by kontan.co.id, adding it was more important than offering incentives to potential investors.

He also suggested Indonesia needed to open the door for raw material imports, adding that boosting the export-oriented manufacturing sector would help the country's GDP to grow faster. (bbn)
https://www.thejakartapost.com/news...ring-key-to-escape-5-percent-growth-trap.html

 

[Nike]

Rotorcraft Asia 2019: White skies ahead in Bali
10th April 2019 - 15:00 GMT | by Richard Thomas in Singapore

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Indonesia’s Whitesky Aviation is expecting to form a partnership in Bali by the middle of the year to explore opportunities for its Helicity market offering, as the company continues to eye technological developments in the aviation sector.

The Bali partnership would be one of Whitesky Aviation’s key milestones in 2019, Denon Prawiraatmadja, CEO and founder, told Shephard.

Complementing the current operational environment around Jakarta, which sees a significant proportion of its market centred on business, Bali would provide additional opportunities in the tourism sector.

Commenting on the growth potential and future use cases of unmanned air mobility systems, Prawiraatmadja explained that safety issues ‘must come first’ with the technology in order to bring it to market.

The company’s Helicity Air Transport is tailored for individuals or groups seeking rapid transport to support their business activities.

The company currently operates Bell 429and Airbus 130 helicopters and has ordered 30 Bell 505s.


https://www.shephardmedia.com/news/rotorhub/white-skies-ahead-bali/
To promote private company like this Indonesia can get boost in defense sector as more people will engage in aero and rotorcraft business and more people and asset to be drawn in emergency situation